Economics of satellite communications in the context of intermodal competition

Abstract

Satellite communications is a non-autonomous and marginal subset of the vast sector of communications. Its marginal nature and dependence upon major external variables make it particularly unstable and relatively unpredictable, and therefore a priori economically unattractive during a deregulation process. The basic economic data that govern this activity are presented within a context of intermodal competition (with terrestrial cables and radio waves). The technical and economic parameters of intermodal competition and complementarity are of equal importance to the issues of regulation and intramodal competition. The impact of intermodal competition on the growth of satellite communications is analysed according to market regulation and the degree of economic development.